Buhari’s $3 billion request meant to refinance loan by Jonathan administration – Adeosun

Kemi Adeosun, Minister for Finance
Kemi Adeosun, Minister for Finance [Photo credit: The BusinessPost]

The Finance Minister, Kemi Adeosun, has said more than half of the recent loan request by the federal government was to refinance loans taken by the Goodluck Jonathan administration.

President Muhammadu Buhari recently wrote the Senate asking for permission to secure the $5.5 billion external loan.

Mrs. Adeosun, in a statement by her office, said $3 billion of that loan is to refinance the loan by the immediate past administration.

Read the full statement by the finance ministry below.

The Minister of Finance, Kemi Adeosun, on Wednesday revealed that the federal government would apply $3 billion in refinancing the legacy debts of the immediate past government.

The outlay is part of the $5.5 billion foreign loan being sourced from the International Financial Markets.

The Minister, who appeared on Arise TV’s News Programme, said the proposed $5.5 billion loan was made up of two components – refinancing of heritage debts to the tune of $3 billion and new borrowing of $2.5 billion for the 2017 Budget.

She said, “Let me explain the $5.5 billion borrowing because there have been some misrepresentations in the media in the last few weeks. The first component of $2.5 billion, represents new external borrowing provided for in the 2017 Appropriation Act to part finance the deficit in that Budget.

“The borrowing will enable the country to bridge the gap in the 2017 budget currently facing liquidity problem to finance some capital projects.

“For the second component, we are refinancing existing domestic debt with the US$3 billion external borrowing. This is purely a portfolio restructuring activity that will not result in any increase in the public debt,” she disclosed.

Ms. Adeosun further noted that the country’s debt puzzlingly rose from N7.9 trillion in June 2013 to N12.1 trillion in June 2015, despite the fact that only 10 per cent of the budget was allocated to capital expenditure when oil price exceeded $120 per barrel.

She emphasised that the President Muhammadu Buhari-led administration was investing in critical infrastructural projects such as roads, rails and power in order to deliver a fundamental structural change to the economy that would reduce the nation’s exposure to crude oil.

“Under this dispensation, we are not borrowing to pay salaries. If all we do is to pay salaries, we cannot grow the economy. This Administration is also assiduously working to return Nigeria to a stable economic footing. In light of this, the government adopted an expansionary fiscal policy with an enlarged budget that will be funded in the short term, by borrowing,” Adeosun stated.

She reassured that the $5.5 billion foreign borrowing was consistent with Nigeria’s Debt Management Strategy, whose main objective was to increase external financing with a view to rebalancing the public debt portfolio in favour of long-term external financing.

“Nigeria’s debt to Gross Domestic Product (GDP) currently stands at 17.76% and compares favourably to all its peers. The debt to GDP ratio for Ghana is 67.5%, Egypt is 92.3%, South Africa (52%), Germany (68.3%) and United Kingdom (89.3%).

“Nigeria’s debt to GDP ratio is still within a reasonable threshold. This Administration will continue to pursue a prudent debt strategy that is tied to gross capital formation. This will be attained by driving capital expenditure in our ailing infrastructure which will in turn, unlock productivity and create the much-needed jobs and growth,” the minister added.


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  • dami

    The mess GEJ and his forty theives created is what is being cleaned up – the only grouse is that this mess was grossly underestimated, hence the pink elephant promises to the masses by the APC while campaigning OR the PDP sabotaged their efforts by looting the treasury dry just before hand over OR both…after all they sold oil at $100 / $120 so where are the projects? what did they spend this money on? and on top of high priced oil they still borrowed…so where did all this money go?
    To hell with the PDP or such individuals…never again should we see such rogues in power.

    • Otile

      Don’t you see that this woman and her looting partners are raping Nigeria lame? Do you need a Babalowo to tell you that her claims here are false? Dami, ronu.

      • dami

        Well the facts I know is that gej and co sold oil for $100 and above….I can’t see what they did with the cash….if you have evidence pls share.

        • FreeNigeria

          GEJ might be gone, but the people that ate with him, danced with him and looted our funds with him are still in power and continued where GEJ stopped. How do you justify that?

          • Sab

            Eg?

        • Fairgame

          The fact you know is GEJ GEJ GEJ… what about Yar Adua under whom the oil was sold at that rate? Yet it is always GEJ under whom Sovereign wealth fund was begun… and anyway oil is being sold today and why is there no mention of it by this most fraudulent government. May God punish all who use their lips to slander others for no reason other than propagand and lies. Shame on you all.

        • Otile

          They built almajiri schools for your masters’ yara. They built rail lines for you and your masters. They kept peace. What has Buhari done for Nigeria other than deceptions, proxy looting, and massacres?

        • Sab

          What happened to the Excess Crude Account then? Forgotten how and when Amaechi led NGF dragged GEJ/FG to court for the eca money to be shared, that it belongs to the states. They even refused out of court settlement, leading to the money being shared amongst the FG, states, LGAs. Same people turned round to shout GEJ fidnt save. What goes around, indeed comes around.

      • Sam

        Moron , tell us the figure then to counter her claims , Okonjo nomics destroyed the economy with her wayo gangs.nonsense

        • Otile

          What figures do you want from me, since Buhari made himself Petroleum Minister do you know how much Nigeria gets from oil again? Oil price is booming again, but can you hear that from Buhari and his Finance Minister? Secrecy is the sole of looting in Buhari’s administration.

          • Sam

            You claimed the Finance minister is lying , how did you arrive at that conclusion? Why don’t you allow her predecessor to come counter her ?

        • Fairgame

          God punish you for slandering OkonjoIweala here. The woman that saved and asked for money to keep being saved is the one you abuse not Amaechi and Fashola and co that spent all the savings. But for OkonjoIweala would your pathetic country have a sovereign wealth fund? All the systems in place to check corruption since Obj day’s was put in place by OkonjoIwral yet bigots like you will come online to abuse the woman, What initiative has this worthless government undertaken since coming to power apart from propaganda and lies. May God Almighty cause men to slander you and abuse you the way you and your likes have slandered OkonjoIweala.

          • Sam

            God does not hear the prayers of thieves and defenders of the corrupt. So your swear is right back on you times 1billion times ,crook.

        • Sab

          Honest Nigerians now who destroyed the economy. They dont need you to tell them. They were buying ricethen and now they know better.

      • NwaIgbo

        Otile’s madness again?

        • Otile

          OmoYoruba,
          Don’t pretend to be Igbo. What’s your own madness about? Are so insane you don’t know your Yoruba tribe again? Keep on lying to your soul. Odale

    • Sam

      Don’t mind the twats, jaree

    • FreeNigeria

      Let’s stop the blame game and let’s hold the worthless administration accountable for their actions. GEJ was voted out. he’s no longer running the country.

    • Sab

      Ask Fashola how much debt he left for Ambode. When he criticised GEJ during hand over Okonjo Iweala told him point blank that the debts comprised states external debts which FG stood surety for thrm. She reminded Fashola that jis Lagos State was even owing highest and he never raised voice again. Same also to Edo Dtate’s O_hiomhole. Propaganda has failed, anti corruption no longer flying as those have been overtaken by recent events, BabachirGate, OkeGate, MainaGate, Baru/KachikwuGate, now it is borrowingGate.

  • Olusola

    Nigerians are skeptical because of PMB’s body language. Daura, Kyari and Malami ought to have been booted a while back.

  • Otile

    Wayo Allah. This woman has fucked Nigeria silly. Over $4 bn to service Jonathan’s loan, what dishonesty!

  • FreeNigeria

    Blame, blame and blames are next to lies and incompetency this administration is great at. Whether GEJ or OBJ took the initial loan doesn’t make it justifiable. Stop blaming and perform. if the job is too much for PMB, resign.

  • Maryam (Colonel)

    Stop covering up your ineptitude with lies. We simply don’t know what you folks in govt are doing with our money. You award $30billion contracts without approval by the FEC. Buhari is just taking out loans to develop the North. Now they are about to spend another $700miilion of our money looking for oil in Sokoto basin(where there is no oil) after giving up on the Northeast.

    • Jon

      They are waiting to find oil in the North before they can agree to RESTRUCTURE. You will give Buhari and his Huasa/Fulani invaders from Futa Jallon mountains heart attack, if you talk about RESTRUCTURE or DEVOLUTION of power to the states. Since oil has been been found in Daura, one cannot use the word Restructure or Devolution. Both words are hate speech to the North. Whoever uses those words are terrorists in the books of Buhari and his Hausa/Fulani invaders from Futa Jallon Mountains.

    • amah sossy

      Please no contract was paid for as a contract of that magnitude will only be approved by FEC. Oilfield development contract is not one year plan. After drilling of oil well and analysis of the data, it takes 2-5 and sometimes 8 years to plan, mobilize funds and award contracts for field development. Ask any professional on the Field. And they are continues works known to all parties before drilling after survey. You can see all the professional bodies Nupeng, Pengassan and others are all against the hon. Minister. Only the oil swap deal you can drag about but any other one has Intl standard online. Labour, security and logistics costs vary in Nigeria.

  • forestgee

    How much have you recovered from looters? Everything about this government is opaque…that’s why Maina resurfaced with promotion.

  • Jon

    Financing debt with debt.

    • Africa

      Would you rather that they default on making repayments?

  • Otile

    What about the $43 million looted by Oke, is Calamity Kemi still blaming Jonathan for the theft?

    • amah sossy

      Jonathan gave Oke the money to keep knowing fully well that financial institution would have been the best option against thievery.

      • Otile

        Is that what Babachir told you?

  • Udonna Yahshalom Nwokoji

    Which day will APC come and clarify what you mean, Until its clarified, its a mere Cock and Bull shit. Burutai and Osibanjo has taught Nigerians to listen twice to their leaders

  • Gary

    Madam, how about asking Maina to give you loan? We have local sources you are yet to explore, Ma.
    Malami (again) wants to steal the savings of (mostly Southern) Nigerians in Diaspora when he could have asked his thieving brethren to give us loans to pay other loans.

    Please tell Malami to ask Maina and Baru to help your government. And take his sleazy hands off our accounts over BVN.
    Nobody asked Maina for his BVN when they paid him N22m in salary arrears. If they did, then EFCC would not be telling tall tales of being unaware of his presence in the country.

    • Solomon Brown

      You don’t speak for the south, everyone sees you for who you truly are which is nothing but an attention seeking whore. Johnny -come lately- anti-Buhari fraudster, you only got around to critiquing this corrupt government, when it became politically convenient. Again you are a fraud and very pretentious character, who does not have a mind of their own.

      • Gary

        Thank you. You sound hurt and bitter but I’m willing to stand 1000% behind my positions on this forum and everywhere else.
        Wish you Buhari lapdogs could say the same. In the light of daily revelations of an Emperor in borrowed robes. And the incompetent and corrupt bunch of morons who surround him.

        Again follow the Jesus Rule: by their fruits shall you know them. My fruit is all in the open for all to see.

        • Solomon Brown

          Your fruits are pretense, blatant lying and covetousness, these cannot be considered good fruits by any stretch…….

          You have been carrying water for this administration and APC until you noticed the tides turning and now all of a sudden you want to jump ship…….

          Egbon you are only anti Buhari because it became politically expedient… On the other hand I have been against this government before it became cool to do so, stop lying you will continue to get exposed by me every time you do…….

          I am not hurt, I just won’t sit around and allow you engage innocent people in your mind f***, not happening.

          • Gary

            Now I see your problem. You’re apparently mixing me up with the BMC imposter using my handle on Sahara Reporters to earn dirty money.
            Sorry, I’ve refused to yield my name to him and leave it up to readers to tell the difference.
            Hired guns like him and Lai’s other regime minions here forced my intervention on newssites like this to stop them from turning the Buhari mistake into a calamity for the Nigerian people and democracy.
            Some of us assumed in the run up to 2015 that enough people knew the man than to see him as an better alternative to tthe bumbling Jonathan.
            But we did not factor the insidious impact of propaganda creating a false narrative for the Islamist dullard to actually win the election.

            Well, here we are in a rear-guard struggle to end this plague on the nation on or before 2019. So help us God.
            Fortunately, the sick man and his men are doing a great job of self-destruction. We will vote them out in another sixteen months and Buhari will return where he belongs with Nigeria’s other tyrants: in the ash heap of history.

    • Sab

      Now EFCC are not tracing and freezing St Maina’s bank accounts. Maybe he doesnt keep money in the bank

  • emmanuel

    The week began with almost every story having Jonathan’s name imprinted and that seem to be the instructions and startegy to divert attention. buyers beware and continue with pressure for Buhari to step down. This confirms that this APC government has fully failed on all ends.
    They have also asked their undertaker Okon (the dog) Abang to rattle him, and make Jonathan the subject of newer discussions; away from Maina gate an all other ragging scandals.
    Imagine the lame Duck Kemi bringing Jonathan’s name to the fraud she is scheming to undertake. How come every Bond, Loan or negotiation by Kemi carry seven percent interest rate in climes where rate bands in around two percent?
    The women is an unproductive, brainless rogue and a complete stooge to a blank brain

    • Otile

      She is a quack. She hopes to cover up her incompetence by invoking the name of Jonathan. Creep.

  • Ishaku isaac

    This is a cock and bull story. Please, bring back Okonjo Iweala over this ignorant woman.

    • amah sossy

      For your info, okonjo iwela is a paper economics who will do well with Briton woods financial institutions and developed economies. Ours is an agrarian economy and she failed woolly when there. She was good at formulating policies but almost zero supervision of the potty.

  • Stanley

    Leave Jonathan alone. Something is ominous about him. He is a very humble and prayerful person. God fights for such people. Try it for 6 months and find peace.

    • kinsly

      Just keep quiet I beg.

  • Someone

    borrow borrow, they go borrow tomorrow.

  • Kenny

    Funny! Government is a continuum, my dear Minister. Leave President Jonathan alone and do your work. Perhaps the only “achievement” of this President Buhari’s government is to criticize the past administration. What a same!!